India's data centre capacity soars past 1.5 GW; Mumbai hosts 53% of total
According to the CBRE report, 53 percent of the nation's total capacity is concentrated in Mumbai, the financial capital, fueling concerns about resource-intensive data centres being located so close to major cities.
India's data centre capacity has increased by 260 MW, reaching 1.5 GW by the end of September, according to a property consultant report released on Wednesday. The report by CBRE highlighted that 53 percent of the country's total capacity is concentrated in Mumbai, the financial capital, raising concerns about resource-intensive data centres being located near major cities.
The growth in capacity is being influenced by a number of things. These include the fast adoption of digital technologies, supportive government policies, and more companies investing in Artificial Intelligence (AI).
Anshuman Magazine, the Chairman and CEO of CBRE in India and other areas, noted that the government's plans to keep important information within the country, along with various other initiatives, are successfully attracting more investors.
Investment and geographic focus
India has attracted nearly $94 billion in data centre investment commitments since 2019, with Telangana, Maharashtra, and Tamil Nadu emerging as the top three investment destinations. Investment commitments totaling $30 billion have been secured for setting up data centres in India during the January–September period of 2025.
Recent times have seen significant investment announcements from various entities, including major conglomerates like the Tata Group, which has announced plans to build 1 GW of capacity itself.
Interest in setting up capacity in Mumbai is primarily due to its proximity to global internet exchange points and its strategic location as a key entry point for worldwide submarine cables. Geographically:
- Mumbai holds 53 percent of the capacity.
- Chennai ranks a distant second with a fifth (20 percent) of the country-wide capacity.
- Delhi NCR accounts for 10 percent.
- Bengaluru follows at 7 percent.
Cost and demand advantages
India provides one of the most affordable places for data centers in the world. This is largely due to lower costs for building facilities and electricity compared to countries like Singapore, China, and Japan.
Many companies around the world have established Global Capability Centres (GCCs), which help increase the demand for computing power. These centers require a lot of computing resources to support their work related to artificial intelligence (AI).